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Government and Private Organisations are partners in public services delivery. We will think about whether or not Government is the best organisation to provide public services, or the private or either the non-profit sector by giving the merits and the demerits of each of them. Key Words Public Service is a service provided by government or local government. Private Service provider is a private service provided by private business. Example rail transport is now privately run in most countries with an exception of a few like Zambia.
Public sector
Public Services are organisations that are directly run by the National or Local Government. An example of a Public Service include Schools, Hospitals, local parks etc.The Public Sector as it is also known as is used to provide services to the public.
Merits
Cost Savings
The public controlled the service and therefore the profit margins are kept low. The costs of using Public Services are covered from the Taxpayer therefore cannot go too much into debt. Cost savings materialize in several different forms but are mainly due to the public accountability of the people in charge. Generally speaking, the public partner’s fundamental drive for economic gain yields it an incentive to continually improve its performance, thereby cutting overall costs. (Salamon, 1987)
Enhancing Public Management
By inviting the private partner in, the public authority can transfer risks and responsibilities over the day-to-day operations of two or more phases of the urban infrastructure project to the private consortium. This frees the public sector to focus on other important policy issues such as regulating, performance monitoring and urban service planning. (Salamon, 1987)
Mitigating Risk
The more complex the urban project and the more people involved the higher and more varied the risk becomes. Although a carefully structured public manages risk through a well defined contractual agreement, some risk is unforeseen and therefore
Public sector
Public Services are organisations that are directly run by the National or Local Government. An example of a Public Service include Schools, Hospitals, local parks etc.The Public Sector as it is also known as is used to provide services to the public.
Merits
Cost Savings
The public controlled the service and therefore the profit margins are kept low. The costs of using Public Services are covered from the Taxpayer therefore cannot go too much into debt. Cost savings materialize in several different forms but are mainly due to the public accountability of the people in charge. Generally speaking, the public partner’s fundamental drive for economic gain yields it an incentive to continually improve its performance, thereby cutting overall costs. (Salamon, 1987)
Enhancing Public Management
By inviting the private partner in, the public authority can transfer risks and responsibilities over the day-to-day operations of two or more phases of the urban infrastructure project to the private consortium. This frees the public sector to focus on other important policy issues such as regulating, performance monitoring and urban service planning. (Salamon, 1987)
Mitigating Risk
The more complex the urban project and the more people involved the higher and more varied the risk becomes. Although a carefully structured public manages risk through a well defined contractual agreement, some risk is unforeseen and therefore
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